Aurobindo Pharma Sees Surge in Call Option Activity Amid Bullish Momentum

Strong Call Option Activity Highlights Investor Optimism

The pharmaceutical heavyweight recorded a remarkable 7,101 call option contracts traded at the 1,200 strike price, generating a turnover of approximately ₹1969.96 lakhs. This level of activity is significant given the underlying stock’s current market price of ₹1,205.30, indicating that traders are positioning for further upside beyond this strike level. Open interest stands at 1,500 contracts, reflecting sustained interest and potential for continued volatility as expiry approaches.

Underlying Stock Performance Supports Bullish Positioning

Aurobindo Pharma’s stock price has demonstrated robust performance, outpacing its Pharmaceuticals & Biotechnology sector by 4.52% on the day. The stock has gained 6.6% over the past three consecutive trading sessions, underscoring a strong upward trend. Notably, the stock opened with a gap up of 3.42% and reached an intraday high of ₹1,214.70, a 5.57% increase from the previous close. This price action is supported by the stock trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bullish momentum.

Market Cap and Quality Metrics Reflect Mid-Cap Stability

With a market capitalisation of ₹66,891 crore, Aurobindo Pharma is classified as a mid-cap stock within the Pharmaceuticals & Biotechnology sector. The company’s Mojo Score currently stands at 55.0, with a Mojo Grade of Hold, recently downgraded from Buy on 1 December 2025. This adjustment reflects a more cautious stance amid evolving market conditions, although the stock’s day change of 4.31% and strong price momentum suggest underlying strength. The Market Cap Grade is rated 2, indicating moderate market capitalisation relative to peers.

Expiry Patterns and Strike Price Analysis

The call options expiring on 24 February 2026 have attracted the highest volume, with the 1,200 strike price serving as a focal point for traders. This strike is slightly below the current underlying price, suggesting that market participants are betting on continued gains in the near term. The open interest of 1,500 contracts at this strike price indicates that many investors are holding positions, potentially anticipating a breakout above this level before expiry.

Liquidity and Trading Dynamics

Aurobindo Pharma’s liquidity remains robust, with delivery volumes on 29 January recorded at 2.82 lakh shares, only marginally down by 0.95% compared to the five-day average. The stock’s traded value supports sizeable trade sizes, with liquidity sufficient for transactions up to ₹1.38 crore based on 2% of the five-day average traded value. This liquidity profile facilitates active participation from institutional and retail investors alike, underpinning the vibrant options market activity.

Sector and Benchmark Comparisons

On the day, Aurobindo Pharma’s 4.65% return significantly outperformed the Pharmaceuticals & Biotechnology sector’s 0.56% gain and the broader Sensex, which declined by 0.48%. This relative strength highlights the company’s resilience amid mixed market conditions and reinforces the bullish sentiment reflected in options trading. Investors appear to be favouring Aurobindo Pharma as a key beneficiary of sectoral tailwinds and company-specific catalysts.

Investor Sentiment and Outlook

The sustained call option activity at the 1,200 strike price, combined with the stock’s strong technical positioning, suggests that investors are increasingly confident in Aurobindo Pharma’s near-term upside potential. The stock’s ability to maintain gains above key moving averages and outperform sector benchmarks supports a constructive outlook. However, the recent downgrade to a Hold rating by MarketsMOJO signals that investors should remain vigilant to evolving fundamentals and broader market risks.

Conclusion: Aurobindo Pharma’s Position in the Current Market Landscape

Aurobindo Pharma Ltd. stands out as a focal point for bullish options traders, reflecting optimism about the company’s growth trajectory within the Pharmaceuticals & Biotechnology sector. The combination of strong price performance, active call option volumes, and solid liquidity underscores the stock’s appeal to both short-term traders and longer-term investors. While the Hold rating advises caution, the prevailing market dynamics suggest that Aurobindo Pharma remains well-positioned to capitalise on sectoral opportunities and deliver value to shareholders in the coming months.

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